CVW - ClearView Wealth

[System]

Clearview Wealth Limited (CVW), formerly MMC Contrarian Limited (MMA), is a vertically integrated financial services company with a focus on the wealth management industry. MMC Contrarian owns a fund management and financial service business called ComCorp FS.

http://www.mmccontrarian.com.au

 

[Dona Ferentes]

mmm, nary a comment for the entire life of this outfit. (Somewhat sensible, as we shall see)

FY21 has been a transformational year and the business has achieved a number of milestones which place it in a strong position for the future and makes this an ideal time to undergo a strategic review. In particular:
• Strong balance sheet and capital base backed by net cash and investments of $374m as at 30 June 2021 (equates to 56 cents per share), and raising of $75m of Tier 2 capital and completion of other capital management initiatives in FY21;
• Solid business performance in FY21 in a challenging environment. Business has performed relatively well despite challenges presented by COVID-19 and the Board has declared a fully franked FY21 cash dividend of 1cps;
• Agreement to separation of the dealer group and financial advice business from the ClearView Group, through a strategic transaction with Centrepoint Alliance that was announced on 25 August 2021;
• Restructure of the company by line of business with additional and improved capability;
• Commencement of multi-year life insurance transformation project and progress towards the launch of a new contemporary technology platform and income protection product (ClearChoice) in late 2021; and
• With the process of migrating the private label wrap platform from Colonial First State to HUB24 complete, the process of simplification of the wealth management business has commenced with a view to further digitalisation.

One commentator had a look, and found it curious that 56c in cash and investments, and trading at 54c (now 61c) to be unnerving:

Clearview announced the review on Friday, saying that it was supported by its 60% shareholder – private equity group Crescent Capital. Crescent has been effectively trapped in the stock with no exit because no one seems to be interested in buying.

The announcement of a strategic review is tantamount to Crescent putting the $360 million group on the block. It comes just weeks after Clearview sold its financial advice business to Centrepoint Alliance for around $15 million worth of stock (a 25% stake) and $3.2 million in cash.

and the lack of interest?

Crescent bid for Clearview in 2012 at 55 cents a share, which after 8 years is where the shares currently area. Crescent has been looking for an exit since then but can’t find a bidder game enough. The banking royal commission found the group to have committed 300,000 criminal breaches of anti-hawking laws selling life insurance to poor people using aggressive cold-calling tactics.

- sometimes PE are masters of a black hole, rather than the Universe

 

[IvoryWolf]

A rarely commented upon stock on this forum, Clearview Wealth Limited (CVW) appears within my scans as a stock of interest and forms my selection for the June 2025 Competition for purely technical reasons.

As shown below, looking at the daily chart, a support level (if you can call it that) was established in October last year at the $0.52 level, however this was clearly broken on strong volume the following month. When it comes to technical analysis, once support is broken, it turns into resistance, and that resistance level was tested (unsuccessfully mind you) in mid-March of this year. On it's way to this test, a support level was 'potentially' developed at the beginning of March, but that needed to be tested/established (which it was at the beginning of April with a successful confirmation). We now find ourselves at a point where we are testing the resistance level of $0.52 again right now. Will the share price break through this resistance level this time now, or will the share price retrace back to the support level of $0.425 established back in April?

Looking at the indicators below, the DMI and RSI suggest that a breakout is possible, so the odds are in favour. Not always 100%, but the odds are more likely possible, especially with an increasing 10 and 30 day MA supporting the recent move and an improving ADX (orange line) on the DMI indicator as the +DMI (blue line) is increasing. Let's see how the market support this thesis...